Freeport tax preparer Damaris Beltre gets 4-year sentence for $12M COVID fraud scheme

A former Freeport tax preparer was sentenced Thursday to 4 years in prison in connection with a nearly $12 million tax and pandemic relief fraud scheme.

Damaris Beltre, 59, of Freeport, received the sentence in U.S. District Court in Central Islip after pleading guilty in January to two counts of wire fraud and one count of aiding and assisting the preparation of false tax returns, Newsday previously reported.

Beltre also owes $11.6 million in restitution and will face 2 years of supervised release.

She had faced a maximum sentence of 53 years and restitution of $11.6 million. Prosecutors had recommended a 7-year sentence.

Beltre is among at least 36 Long Islanders who have been charged in fraud cases involving federal and state programs designed to deliver relief to businesses during the coronavirus pandemic. All told, the Long Island defendants allegedly stole more than $100 million, Newsday has reported.

The prison sentence should send a message to others who would defraud the federal government, U.S. Attorney Joseph Nocella Jr. said in a statement.

“Beltre conducted a massive fraud on the government by falsifying documents and brazenly lying in order to line her own pockets with taxpayer money,” he said. “Today’s sentencing should serve as a warning to corrupt tax preparers that federal programs and the treasury are not ATMs that they can loot with impunity."

In delivering the sentence, Judge Sanket Bulsara said he factored in Beltre’s past personal hardships and her exemplary conduct in Metropolitan Detention Center in Brooklyn since she went to jail in March 2025.

“I’m giving you a break here, and I hope you appreciate it,” Bulsara said Thursday in court, noting her potential for rehabilitation upon her release.

Beltre had admitted using some of the proceeds from the fraud scheme toward purchasing a car, a house in the Dominican Republic and jewelry.

As a tax preparer, Beltre allegedly filed false returns with the IRS from 2021 to 2024 that claimed nonexistent dependents and fraudulent COVID-19-related tax credits to reduce how much her clients owed. As a result, the IRS issued nearly $11 million in improper refunds to her clients.

Beltre received more than $1 million in fees related to the false returns, including a percentage of refunds her clients received, according to the IRS. In one instance, she helped an undercover federal agent secure a $14,243 tax refund when he should have owed $205.

Separately, Beltre received more than $1 million across five businesses she was tied to through Paycheck Protection Program applications she submitted from 2020 to 2022, according to court documents.

The government sought a strong sentence because of the low barrier to entry for tax preparers and the need for deterrence, said Assistant U.S. Attorney Charles P. Kelly in court on Thursday.

Kelly alleged in court Beltre had assisted with filing hundreds of false tax returns that claimed $30 million in fraudulent credits, including COVID-19 paid sick leave credits and fuel tax credits. But not all of those credits resulted in refunds.

He noted the sentence recommendation reflected the abuse of a program designed to help suffering businesses during the pandemic.

“Both of the wire frauds took advantage of a national emergency,” Kelly said.

Tax preparers in New York are required to register with the state, and some must complete continuing education requirements. But no formal accounting background or extensive professional certification is necessary.

Beltre, who at times wiped away tears during the more than two-hour sentencing hearing, expressed remorse and a desire to return to her family.

“I’m sorry, and it will never happen again,” she said.

By Jonathan LaMantia

jonathan.lamantia@newsday.com@jonlamantia

Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.